Investment and Securities Act 2025 Review

Flashcards covering the Investment and Securities Act 2025, including modes of foreign participation and procedures for FDI and FPI.

What act establishes the registration of securities by the Securities Exchange Commission?

Investment and Securities Act 2025

What is the registration requirement for securities of a public company allotted to an alien?

They must be registered with the SEC

Which two separate registers is the SEC required to keep and maintain?

FDI and FPI

What are the three modes of foreign participation in Nigeria?

Foreign direct investment, Foreign portfolio investments (FPI), and exemption of foreign companies

How is Foreign Direct Investment (FDI) defined in the transcript?

A measure of foreign ownership of productive assets such as factories, mines, and land

Through what three methods do foreigners take part in businesses under FDI?

Takeover of existing Nigerian companies, merger, or forming and incorporating companies in Nigeria

What is Foreign Portfolio Investment (FPI)?

The entry of funds into a country where foreigners make purchases in the country's stock and bond markets

What is the physical presence requirement for Foreign Portfolio Investment (FPI)?

There is no physical presence, just ownership of a shared certificate which can be electronic

In the procedure for FDI, what is required if the business is to be done with a Nigerian?

A joint venture agreement

When incorporating a company for FDI, which law must be complied with?

Kama

According to the FDI procedure, which entity must register a contract if it requires the transfer of technology?

NoteApp

What is the method for the importation of capital as described in the FDI and FPI procedures?

Importation of capital through unauthorized dealer

Through whom may a foreign portfolio investor apply for shares?

A corporate capital market operator who operates the CSCS account

In the FPI procedure, what is issued following the importation of capital through an unauthorized dealer?

CCI

In the final step of the FPI procedure, where are the shares listed?

Central securities clearing system